Nigeria’s solid minerals sector is shifting as global demand rises for resources like gold, tantalite, lithium, and limestone. Gold, in particular, has recently surged in value as a hedge against economic uncertainty, enabling Nigerian artisanal miners to sell at competitive prices. Lithium, increasingly sought after for electric vehicle batteries, is also experiencing a price boom, drawing substantial international interest. However, Nigeria’s limited processing infrastructure prevents it from fully capitalising on these high-value exports, as much of the country’s mineral wealth is shipped abroad in raw form. This “raw export” model causes significant revenue loss that Nigeria could retain through domestic value-added processing.

Accessing capital for mining infrastructure remains a major barrier to establishing these processing facilities, which would help stabilise local prices and generate higher profits. In response, Nigeria recently launched an investment roadshow in South Africa, aiming to secure $500 million in foreign investment. The goal is to form partnerships that will transform Nigeria’s mineral sector into a competitive, profitable market, potentially stabilising domestic prices and strengthening the local economy.
Economic analysts recommend that the Nigerian government support value addition by offering incentives to encourage mineral processing within the country. These incentives could include tax breaks or funding assistance for private-sector companies willing to invest in processing facilities. Boosted production would benefit Nigeria’s economy, creating jobs, reducing reliance on mineral imports, and ultimately stabilising mineral prices, fostering long-term economic growth.